Interface (NASDAQ: IFSIA) and Mohawk Industries (NYSE:MHK) are both cyclical consumer goods & services companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, earnings, valuation, risk, profitabiliy, analyst recommendations and dividends.

Insider & Institutional Ownership

76.3% of Mohawk Industries shares are owned by institutional investors. 17.1% of Mohawk Industries shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Interface and Mohawk Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Interface 3.87% 10.21% 4.26%
Mohawk Industries 10.54% 16.45% 9.18%

Earnings and Valuation

This table compares Interface and Mohawk Industries’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Interface N/A N/A N/A N/A N/A
Mohawk Industries $9.15 billion 2.03 $1.75 billion $12.91 19.32

Mohawk Industries has higher revenue and earnings than Interface.

Analyst Ratings

This is a summary of current recommendations and price targets for Interface and Mohawk Industries, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Interface 0 0 0 0 N/A
Mohawk Industries 0 1 11 0 2.92

Mohawk Industries has a consensus target price of $266.50, suggesting a potential upside of 6.87%. Given Mohawk Industries’ higher probable upside, analysts clearly believe Mohawk Industries is more favorable than Interface.

Summary

Mohawk Industries beats Interface on 8 of the 8 factors compared between the two stocks.

About Interface

Interface Inc. is engaged in design, production and sale of modular carpet, also known as carpet tile. As of January 1, 2017, the Company marketed its modular carpets in over 110 countries under the brand names Interface and FLOR. The Company operates through three segments: Americas, Europe and Asia-Pacific. The Company distributes its products through two primary channels, including direct sales to end users and indirect sales through independent contractors or distributors. The Company sells an antimicrobial chemical compound under the trademark Intersept that the Company incorporates in all of its modular carpet products. It also sells its TacTiles carpet tile installation system, along with a range of traditional adhesives and products for carpet installation and maintenance that are manufactured by a third party. It also provides turnkey project management services for national accounts and other customers through its InterfaceSERVICES business.

About Mohawk Industries

Mohawk Industries, Inc. is a flooring manufacturer that creates products for residential and commercial spaces around the world. The Company’ segments include Global Ceramic, Flooring North America (Flooring NA) and Flooring Rest of the World (Flooring ROW). Its manufacturing and distribution processes provide carpet, rugs, ceramic tile, laminate, wood, stone, luxury vinyl tile and vinyl flooring. The Global Ceramic segment designs, manufactures, sources, distributes and markets a line of ceramic tile, porcelain tile and natural stone products used in the residential and commercial markets for both remodeling and new construction. The Flooring NA segment designs, manufactures, sources, distributes and markets carpet, laminate, carpet pad, rugs, hardwood and vinyl. The Flooring ROW segment designs, manufactures, sources, distributes and markets laminate, hardwood flooring, roofing elements, insulation boards, medium-density fiberboard (MDF), chipboards, and vinyl flooring products.

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